Since establishing its Asia-Pacific headquarters in Tokyo in 2022, Northleaf Capital Partners has deepened its relationships with institutional investors across the region.
A seasoned global private markets investment firm, Northleaf saw Japan not only as a leading financial hub but also as a natural fit due to the alignment between Canadian and Japanese business cultures. The move reflects the firm’s long-standing investment activity in Asia and growing interest from Japanese investors in middle-market private equity, private credit and infrastructure strategies.
In a recent interview, Northleaf co-founder Jeff Pentland, who set up the Japan office, shared how Northleaf is contributing to Japan-Canada financial ties and supporting Japanese institutions in navigating the evolving global markets.
Bridges: What prompted Northleaf to establish a presence in Japan in 2022?
Pentland: We’ve been investing in Asia for 25 years, and with growing demand for middle-market private markets strategies, we recognized Japan as an ideal base to expand in the region.
Its status as a financial center, plus investor sophistication and strong regional connectivity, made it the right choice to serve our clients more closely.
What progress have you made since launching?
We’re proud to have established our APAC headquarters here. We continue to deepen relationships with a growing base of sophisticated institutional investors, many of whom are increasing allocations to private markets. We’ve also found a natural affinity between Canadian and Japanese investment cultures, which supports long-term, trust-based relationships during times of heightened uncertainty and volatility.
Which strategies are resonating most with Japanese investors today?
In times of market volatility, there’s growing interest in strategies that offer downside protection and steady returns. Our private credit program lends to middle-market businesses in North America and Europe, while our infrastructure investments generate contracted, inflation-linked cash flows.
Our well-established private equity secondaries program is well-suited to take advantage of periods of economic dislocation, offering enhanced liquidity and diversification. Its middle-market orientation targets investments in smaller, regional businesses that are less exposed to international supply chain and trade disruptions.
How does Japan fit into your broader Asia strategy?
Japan was the logical choice for our APAC headquarters, given the size and importance of the economy. Having the opportunity to serve sophisticated Japanese investors is seen as a “seal of approval” by investors across the APAC region, where we’re also seeing strong interest. As a leading international financial center, well-connected regional hub and host of several key private markets forums, Japan offers both strategic connectivity and a strong platform to engage with APAC investors more broadly.
